The world of Ethereum continues to evolve rapidly, with major developments across its technology, ecosystem, and market dynamics. As ETH 2.0 inches closer to reality, investor sentiment is shifting toward long-term value accumulation. This week’s report dives into key updates—from protocol upgrades and DeFi innovations to on-chain metrics and market trends—offering a comprehensive view of Ethereum’s current trajectory.
Market Overview
In recent days, Ethereum has demonstrated resilience amid volatile market conditions. The price found strong support between $210 and $225, with resistance levels observed at $250 and $280. Although short-term fluctuations are expected, the broader outlook remains bullish, supported by growing institutional interest and fundamental improvements in network activity.
👉 Discover how Ethereum's evolving fundamentals could reshape digital asset markets
Secondary Market Performance
1. Spot Market Trends
According to OKEx market data, ETH posted a strong weekly performance, climbing 13.6% to close at $233.61. At one point, prices approached the $250 mark, reflecting renewed investor confidence.
Technical indicators show that ETH found support near the 30-day moving average before staging a sharp rebound. Currently, the price trades significantly above both the 5-day MA and the upper Bollinger Band, suggesting overbought conditions that may lead to minor pullbacks in the coming days.
Key levels to watch:
- Support: $225 (5-day MA), $210 (mid-Bollinger Band)
- Resistance: $250, $280 (weekly Bollinger upper band)
2. Capital Flow Analysis
On-chain funding trends indicate robust capital inflows. Last week saw net inflows exceeding $150 million across major exchanges—a near doubling from the previous week. Notably, Saturday recorded the highest daily inflow, surpassing $180 million, while Tuesday experienced the largest outflow at nearly $50 million.
This sustained influx of capital signals growing market confidence and suggests potential for further upside momentum despite possible short-term corrections.
3. Whale Activity and Large Transfers
Tokenview data reveals increased large-scale ETH movements:
- Transfers of 5,000+ ETH rose by 17%
- Transfers of 10,000+ ETH increased by 4%
- Transfers exceeding 50,000 ETH surged by 50%
Last week saw nine such mega-transactions, including one involving 89,300 ETH moved from a top-500 wallet to a new address. Another notable transfer included 128,000 ETH flowing into Gemini from unknown sources. These movements suggest whales are actively consolidating holdings—often a sign of long-term bullish positioning.
Ecosystem & Technical Developments
1. Core Protocol Advancements
Ethereum 2.0 Multi-Client Testnet Witti Goes Live
On May 27, core developer Afri Schoedon announced the launch of Witti, a public multi-client testnet for Ethereum 2.0. Designed to support multiple ETH 2.0 clients, Witti replaces the previously unstable "Schlesi" testnet, marking a critical step toward full PoS implementation.
This milestone underscores progress toward reducing network congestion and enhancing scalability—key goals of the ETH 2.0 upgrade path.
Compound Announces COMP Token Distribution
Decentralized lending platform Compound confirmed that users will begin receiving COMP governance tokens in mid-June. The distribution aims to decentralize control over protocol changes, allowing any community member to propose modifications—such as adding new assets or adjusting interest rate models.
Governance proposals require at least 1% of total COMP supply to signal support before voting begins. This mechanism ensures broad consensus and prevents unilateral control—a model other DeFi projects are beginning to emulate.
Oasis Trade Launches Native Leverage Feature “Multiply”
MakerDAO’s DEX, Oasis Trade, introduced “Multiply,” a native leveraged trading feature enabling up to 2x long positions on ETH through integrated lending vaults. As the first fully on-chain DEX without fees, this innovation strengthens Ethereum’s position as the leading DeFi infrastructure layer.
Matic Network Partners with Infosys
Ethereum scaling solution Matic Network (now Polygon) partnered with Indian tech giant Infosys, listed on the NYSE. Infosys will act as a validator on Matic’s mainnet, contributing critical infrastructure to secure transaction validation and support enterprise-grade dApp development.
Additionally, Matic raised $4 million in seed funding from Placeholder, Lightspeed Ventures, and Naval Ravikant—highlighting strong investor confidence in Layer-2 scalability solutions.
2key Integrates with Qtum
Layer-2 protocol 2key announced a partnership with open-source blockchain Qtum, making it a launch partner for PPC SmartLinks—performance-based smart referral links that reward user engagement directly on-chain.
2. Community Insights: ETH Scarcity Outlook
Analyst Alex Saunders projects that Ethereum’s Stock-to-Flow (S2F) ratio could surpass gold within two years due to ETH 2.0’s shift to proof-of-stake (PoS). Under this model:
- Current S2F: ~21.95 (comparable to silver)
- End of 2024 forecast: 28.25
- By 2025: Could reach 57.2–58.5, nearing gold’s ~60
With PoS expected to reduce annual inflation from ~4% to ~2.5%, Ethereum may soon become one of the most deflationary digital assets—potentially outpacing even gold in scarcity metrics.
👉 See how Ethereum’s deflationary mechanics could redefine digital scarcity
Decentralized Exchange (DEX) Activity
Per DAppTotal data:
- Weekly trading volume across 17 tracked Ethereum-based DEXs: 429,260 ETH (~$104M) — down 17.2%
- Unique traders: 38,460 — down 13.9%
Notable performers:
- Switcheo: +19.8% weekly growth
- ForkDelta: -9.69%, largest decline
Despite overall volume dip, DEX usage remains robust, indicating maturing market dynamics rather than declining interest.
DApp Ecosystem Growth
DappReview reports:
- 4,307 total dApps on Ethereum
- 18 new dApps launched last week
Top newcomer: GIDA.AI, a Ponzi-style game promising exponential returns via referral chains. Despite hype claiming users can turn 0.12 ETH into thousands, experts warn it operates like a pyramid scheme—high risk, avoid investment.
Mining Metrics
Data from Etherchain.org shows:
- Hashrate: 184.7 TH/s (+1.15%)
- Mining difficulty: 2318 T (+0.96%)
- Daily mining revenue: Slight increase (+0.33%) despite rising gas fees
- New miner addresses: Up 5.26%
Increased miner activity reflects ongoing network participation despite upcoming PoS transition.
On-Chain & Market Intelligence
1. Whale Distribution Analysis
Research by Metacartel Ventures’ Adam Cochran reveals:
- Top 10,000 addresses hold 56.7% of circulating ETH
- Top 1,000: 42.5%
- Top 100: 26.4%
Compared to other assets:
- BTC top 10k: 57.44%
- XRP top 16: 55.2%
- BCH top 1100: 56.8%
These figures suggest Ethereum maintains relatively decentralized ownership—comparable to Bitcoin.
2. Active Supply Hits 3-Month High
Glassnode reports:
- Active ETH supply: 20,653,710 ETH — highest in 3 months
- New addresses created: 447,875 — also a 3-month peak
- Average block interval shortened by 5.1% to 9.292 seconds
Faster block times and rising active supply point to increasing network utilization and user engagement.
3. Address Growth Milestone
As of May 25, the number of non-zero Ethereum addresses reached 40 million, a surge of over 350% since ETH’s all-time high price—demonstrating strong adoption growth.
4. Deribit Options Open Interest Peaks
Skew data shows Deribit’s Ethereum options open interest hit $94 million on May 28—the highest ever recorded—indicating growing institutional hedging and speculative interest.
5. Privacy Comparison: Ethereum vs Bitcoin
A recent study by Hungarian researchers suggests Ethereum offers lower privacy than Bitcoin due to its account-based model encouraging address reuse—unlike Bitcoin’s UTXO system which promotes better anonymity through single-use addresses.
While convenient for developers, this design trade-off makes transaction tracing easier on Ethereum.
Frequently Asked Questions (FAQ)
Q: What is the significance of the Witti testnet launch?
A: Witti is a crucial step toward Ethereum 2.0’s full deployment. It allows developers to test cross-client compatibility and stability under real-world conditions before mainnet migration.
Q: How will ETH 2.0 affect inflation?
A: With PoS replacing mining, annual issuance will drop sharply—projected to reduce inflation from ~4% to around 2.5%, possibly lower if staking participation is high.
Q: Is Compound’s COMP token available now?
A: Yes—distribution began in mid-June as planned, rewarding active users who supply or borrow assets on the platform.
Q: Why did DEX volumes decline?
A: The drop reflects normal market cycles and profit-taking after earlier surges—not necessarily weakening demand. Switcheo’s growth shows continued innovation within the space.
Q: Could Ethereum really become scarcer than gold?
A: Based on projected S2F ratios and reduced issuance post-ETH 2.0, analysts believe ETH could rival or exceed gold’s scarcity by 2025—if staking adoption remains strong.
Q: Are large whale transfers a bullish signal?
A: Often yes—especially when funds move to cold wallets or exchanges like Gemini known for long-term custody—suggesting accumulation rather than immediate selling pressure.
👉 Stay ahead of Ethereum's next price move with real-time analytics and insights
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